State-owned listed companies can of course set up wholly-owned subsidiaries. A wholly-owned subsidiary is equivalent to a one-person limited liability company, and there is only one natural person shareholder or limited liability company among the legal person shareholders.
Paragraph 2 of Article 58 of China's Company Law stipulates that a one-person limited liability company mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.